General Motors has to submit a detailed plan to the U.S. Department of Treasury by Feb. 17 to show how it will become viable. As the clock winds down, GM has no idea what it wants to do with its losing brands, Saturn, Saab and Hummer.
Sources say that with President Barack Obama still selecting his team of advisers, it’s a bit unclear how specific the General will have to be about its plans for the three brands but at this point the company leaders have no clue.
According to Automotive News, insiders said that General Motors has had little success on shopping the brands to potential partners or buyers. GM is also considering shutting down the brands altogether even with the risk of dealer lawsuits.
To show its viability, GM must show that it is likely to achieve long-term profitability and has positive net cash flow. Obama’s ‘car czar’ will reject or accept the plan by March 31. Of course, those were the terms set by Bush’s administration and Obama’s team could reverse those conditions.